China Opens Doors For Indian Pharma With Zero Duty, Relief Arrives As US Shuts Out Imports With 100% Tariff

File Image | China gives duty-free access to Indian pharma.

New Delhi: In a major development, China has slashed the 30 percent import duty on Indian pharmaceutical products to zero. This landmark step will allow Indian drug manufacturers to export medicines to China without paying any customs duty. Experts say this decision could boost Indian pharma exports by billions of dollars in the coming years.

🚨 BIG! China SLASHES 30% import duty to 0% for India’s pharma sector.

— This comes right after US President Trump IMPOSED a 100% tariff on pharma imports 🔥 pic.twitter.com/mlXJArkakk — Megh Updates 🚨™ (@MeghUpdates) September 28, 2025

Timing important as US raises tariffs

The announcement comes just after US President Donald Trump imposed a 100 percent tariff on pharma imports, a move that could hurt India’s large drug-exporting industry. With the US market becoming costlier, China’s decision offers Indian companies an alternative market with strong demand for affordable medicines.

India is known as the 'pharmacy of the world,' supplying affordable generic drugs and vaccines across the globe. The Chinese market, with its huge population and growing healthcare needs, has long been difficult for Indian exporters due to high duties. Now, with a zero percent duty, Indian companies will have a level playing field and better access to one of the world’s largest healthcare markets.

Trade analysts believe this move will help balance India-China trade relations, which are often tilted in Beijing’s favour. Pharma industry leaders also expect this change to create thousands of jobs in India, boost revenues, and strengthen India’s position in global healthcare supply chains.